Use the following information for the next three questions.

Oak Company uses a standard costing system. Manufacturing overhead costs are applied to products on the basis of direct labor hours. The standard cost card shows that 5 direct labor hours at the hourly rate of $25 per hour are required per unit of product. Oak Company had the following data for March:

	Actual	Budgeted
Units produced	22,000	20,000
Direct labor hours	105,000	100,000
Variable overhead costs	$91,000	$80,000
Fixed overhead costs	$51,000	$50,000

Which of the following statements is NOT true?

A. Total manufacturing OH is overapplied by $1,000.

B. Variable OH spending variance is $3000 unfavorable.

C. Variable OH (Labor) Efficiency variance is $4,000 unfavorable.

D. Labor efficiency variance is $125,000 favorable.

E. None of the above